Medicare Tips: How does Medicare work?

This video has basic, generalized information about Medicare. We don’t cover all the details and specifics of the program.

Medicare is a government-sponsored health insurance program that covers most visits to the hospital and visits to the doctor.

Most people become eligible for Medicare when they turn 65 – although there are exceptions.

Basic Medicare coverage is typically referred to as “Original Medicare.”

And, it breaks down into two parts:
1. Medicare Part A – which helps you pay for visits to the hospital.
2. And Medicare Part B – which helps you pay for visits to the doctor when you’re not in the hospital.

Monthly Medicare costs break down like this:
1. PART A is free every month for most people
2. PART B costs about 0 a month for most people

Medicare deductibles break down like this:
– PART A has a deductible of about ,200 – and it can be applied each time you’re admitted to the hospital, unless you’re readmitted for the same illness within a given timeframe – usually 30 days.
– Part B has a 7 deductible that resets once a year.
Here is how Medicare cost-sharing breaks down:
– PART A has co-insurance – a form of cost-sharing – when you’re hospitalized for an extended period of time – usually longer than 60 days.
– PART B has co-insurance – a form of cost-sharing – of 20% for most service, which means you’ll pay 20% of approved costs.

Another Medicare cost to be aware of relates to Medicare’s approved rate:

– In most instances Medicare has an “approved rate,” which is essentially the rate Medicare is willing to pay for any given service, like a doctor visit or an MRI.

– Some health care providers – doctors and hospitals – may wish to charge more than the Medicare approved rate for services.

– And, if you visit one of those providers, you may be asked to make up the differences in costs.